As the UK government stimulates the construction industry

The new program of the government “Help to buy”, aimed at stimulating the real estate market of great Britain has already been evaluated as a very successful program because it has about 10,000 new houses and flats in Britain were built during the last four months.

The program clearly gave confidence to the market and it certainly seems that the number of new housing coming onto the market increases.

Confidence in the property market gave confidence to the construction market in the UK and the number of houses under construction is at its peak in 2008, about a third of a million new housing units were built during the last two years.

The number of first-time buyers a house, also at the highest level since 2007.

Public and private investment funds in the UK dedicated to 19.5 billion for the construction of affordable housing. The governmental programme “Fund to support lending,” gave impetus to the mortgage market where they began to form competitive prices for mortgage products.

The program “Help to buy” consists of two schemes. Fair credit for new real estate – this scheme has already sold 3,000 objects and over 10,000 objects are reserved for the first four months. According to the forecast, the program will help to acquire 74000 homes to new buyers in the next three years. The program is just a loan customers will receive a 20% interest-free loan for a down payment, which will help the buyer to get a mortgage for the purchase of homes valued up to £ 600,000 pounds.

The second scheme – the guaranteed mortgage, which administrered by the Ministry of Finance, will go on in January 2014.

In this program, the buyers will be able to get a mortgage, only with 5% Deposit, with the support of government guarantees. This will allow lenders to inject into the industry around £130 billion, with a small initial payment received from the buyer.

This scheme will lead to even greater availability of mortgages and will promote confidence in housing construction.

According to the forecast of experts, these two schemes will play a major role not only in increasing the volume of construction of new homes, but also in creating new jobs, expanding infrastructure, and ultimately in improving the economic situation in the country as a whole.

® Alice Morgan 10.08.2013